Kathmandu. Chandra Prasad Dhakal, President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), emphasized the need for the continuation of “duty-free” access to sustain and increase exports to the United States.
Speaking at the program “US-Nepal Trade and Investment: Prospects and Challenges,” organized jointly by FNCCI, Garment Association of Nepal, Federation of Export Entrepreneurs of Nepal, Nepal-USA Chamber of Commerce and Industry, and USAID, President Dhakal highlighted the importance of renewing duty-free access to 77 products, a facility granted by the US following the 2015 earthquake, set to expire next year.
He urged stakeholders to prioritize the continuation of this access and the resumption of the currently suspended Generalized System of Preferences (GSP) during the upcoming Trade and Investment Framework Agreement (TIFA) meeting scheduled for next week. With Nepal’s recent transition from a Least Developed Country (LDC) to a Developing Country, Dhakal stressed the need for joint efforts between the private sector and the government to maintain duty-free privileges.
Secretary of the Ministry of Industry, Commerce, and Supply Krishna Bahadur Raut affirmed that discussions with the US would proceed based on the private sector’s recommendations. Additionally, Member of Parliament Ganesh Parajuli assured his advocacy for the continuation of these benefits at parliamentary and other relevant levels.
Anjan Shrestha, Senior Vice President of FNCCI, also called for increased efforts to boost exports to the US. Although a TIFA was signed between Nepal and the US in 2011 to facilitate bilateral trade and investment, significant progress has yet to be realized. The US remains Nepal’s second-largest export destination, and stakeholders have expressed concern that the loss of duty-free access could lead to a decline in exports.